How much will it cost to borrow from 401k plan?

Hi Guest

When you borrow from your 401(k) plan account, you are required to pay loan-processing and administrative fees and also the interest on the loan. The Internal Revenue Service requires you to pay interest at a rate 2% higher than the prime rate. When you pay the interest to your 401(k) plan account, the loan becomes a fixed-rate investment in your 401(k) account.

Hope this information will satisfy your needs.

Please feel free to post further queries.

Regards,
Jessica.

After you are aged 62 or more their is a special type of mortgage which is known as reverse mortgage for which you would be able to qualify.

Nstif, if you already have a home then a reverse mortgage will help to convert the equity in your home into cash funds.

For getting a mortgage when you do not have employment you will have to pay relatively higher interest rate than normal.

`what do i do to get a 600.00 loan

Hi duane doran,

I don't think its a good idea to withdraw money from your retirement account. As you are planning to borrow an amount of $600.00, I think it will be better if you look for a personal loan. However, you should keep in mind that the personal loans come at a higher rate of interest.

Thanks,

Jerry